Madagascar plans to raise diesel tax to 503 ariary
By the AFREEQUE newsroom, based on L'Express de Madagascar
Madagascar’s draft 2027 budget plans to raise the diesel tax from 228 to 503 ariary per litre, an additional 275 ariary. Expected revenue from the TPP and VAT reaches 257.79 billion ariary, while the government also plans investments in agriculture and education, according to L’Express de Madagascar.
The Tax on Petroleum Products applied to diesel in Madagascar would rise from 228 to 503 ariary per litre under the Initial Finance Bill 2027, an increase of 275 ariary. Expected tax revenue, including VAT, is estimated at 257.79 billion ariary, according to L’Express de Madagascar.
The government thus wants to align diesel taxation with that of petrol, in line with commitments made to the International Monetary Fund under the Resilience and Sustainability Facility. UCTU president Jean Louis Emile Rakotonirina is calling for consultation before the measure is implemented, while Minister of Economy and Finance Herinjatovo Aimé Ramiarison says discussions are planned and social support is being considered.
The draft budget also provides for customs duties on smartphones and certain connected devices to rise from 20% to 30%, according to L’Express de Madagascar. Industry professionals fear the increase will make digital equipment used notably for studies and work more expensive.
Madagascar’s 2027 budget had already been presented on 21 October as prioritising water, energy and agriculture. The 2027 Madagascar budget is now subject to new tax measures affecting fuel and technological equipment in particular.
